Preparing for emergencies should be a priority.
You see it on the news all the time.
Wildfires.
Tornadoes.
Floods.
Hurricanes.
Car accidents.
These can leave horrific consequences in their wakes.
Recovering and starting over can be costly, too.
According to a recent NASDAQ article titled “5 items for your financial 'go-bag',” you should never assume tragedy will not strike.
How do you prepare?
Create a safety net.
You do not want to put large expenses on your credit card when tragedy strikes.
Why?
You will eventual need to pay it all back.
You should have money set aside for when you need it.
How much?
You should have at least enough set aside to cover 2 to 3 months of your living expenses.
Have some cash available.
Sometimes credit cards and ATMs are not an option.
You should at least have a $100 in bills and coins around.
Get insured.
Insurance helps take the financial burden off of you in an emergency.
No one wants to be in a situation where they will need it, but if disaster strikes you will be happy you have insurance.
Document.
Use your camera to snap pictures in an insurance claim.
Take pictures of items you own and store them should you need to show what you owned if it burns up or floats away.
Keep records.
You should have copies of important documents.
These include but are not limited to medical information, financial accounts, tax returns, estate planning documents, personal IDs, and insurance records.
Keep digital files or scans and also secure a safety deposit box.
By planning ahead, any emergency will become less tragic.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: NASDAQ (February 14, 2018) “5 items for your financial 'go-bag'”
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